Which of the Following Statements Regarding the Inclusion of Liabilities

question 2

Multiple Choice

Which of the following statements regarding the inclusion of liabilities on the statement of cash flows is true?

• A) All current liabilities affect the operating activities section.
• B) Long-term liabilities generally affect the investing activities section.
• C) A decrease in a current liability from the beginning to the end of the year is accompanied by a decrease of cash.
• D) A decrease in a current liability from the beginning to the end of the year is accompanied by an inflow of cash.